Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 9- 1 Chapter 9 Managing Supplier Quality in the Supply Chain

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.9- 1

Chapter 9

Managing Supplier Quality

in the Supply Chain


Strategic Quality PlanningDesigning Quality Service Chapter 9

The value chainSupplier alliancesSupplier development Applying the contingency perspective to supplier partneringA supplier development programAcceptance sampling and statistical sampling techniquesBuilding an understanding of supply chain quality management


Strategic Quality PlanningDesigning Quality Service The Value Chain

The value chain is a tool that disaggregates a firm into its core activities to help reduce costs and identify sources of competitiveness.



The value chain consists of a network of value chainsValue chain activities are the tasks that add value for the customersNon-Value chain activities typically have costs but no effect on customers and are referred to as hidden factory



Value Chain Activities



The chain of customers

If you work at workstation 4 in a process … you will make sure that the work you do is impeccable before you release it to … workstation 5



Managing the supply chain

… The linkage between a series of suppliers and customers.


Strategic Quality PlanningDesigning Quality Service Supplier Alliances

There is a trend toward developing closer relationships with fewer suppliersInspired by lean purchasing approaches supplier alliances relationships have emerged



Supplier Development ApproachesSingle sourcingDual sourcingSupplier evaluationSole-source filters

BaldridgeISO 9000:2008

Supplier certification or qualification programsSupplier development programsSupplier auditsAlliances



Single SourceElectronic Data Interchange (EDI)Vendor Managed Inventory (VMI)



Supplier Development1. Identify critical products and services

2. Identify critical suppliers

3. Form cross-function teams

4. Meet with supplier top-management

5. Identify key projects

6. Define details of agreement

7. Monitor status and modify strategies



Supplier Relationship Management Systems (SRMS)

Much like CRMS Spend analytics Sourcing execution Procurement execution Payment Supplier score-carding Performance monitoring


Strategic Quality PlanningDesigning Quality Service Applying the Contingency Perspective to Supplier Partnering

One variable which affects what customers want from their suppliers is … position in the supply chain


Strategic Quality PlanningDesigning Quality Service A Supplier Development Program: ISO/TS 16949

The ISO/TS 16949 standard applies only to automotive companies

Developed by the International Automotive Task Force (IAFT). Members include:

FordGMDaimler Chrysler



ISO/TS 16949 Includes: Quality management systemManagement responsibilityResource managementProduct realizationMeasurement, analysis and improvement



Model of a process-based quality manage-ment system


Strategic Quality PlanningDesigning Quality Service Acceptance Sampling and Statistical Sampling Techniques

Acceptance sampling is the technique used to verify that incoming goods from a supplier adhere to quality standards.

Acceptance sampling is controversial.


Strategic Quality PlanningDesigning Quality Service Acceptance Sampling and Statistical Sampling Techniques

Acceptance sampling might be needed when:Dealing with unproven suppliersDuring start-ups and when building new productsWhen products can be damaged during shipmentWhen problems with a certain supplier have been noticed


Strategic Quality PlanningDesigning Quality Service Building an Understanding of Supply Chain Quality Management

Supply Chain Quality Management is a systems-based approach to performance improvement that leverages opportunities created by upstream and downstream linkages with suppliers and customers.


Strategic Quality PlanningDesigning Quality Service Summary

The value chainSupplier alliancesSupplier development Applying the contingency perspective to supplier partneringA supplier development programAcceptance sampling and statistical sampling techniquesBuilding an understanding of supply chain quality management


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Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 9- 1 Chapter 9 Managing Supplier Quality in the Supply Chain